Arkansas Code § 23-89-507 - Inspection by Insurance Company -- Change in Coverage

(a) (1) Each insurance company insuring an operator of an amusement attraction or amusement ride as required in this subchapter shall inspect the amusement attraction or amusement rides of the insured for safety at least one (1) time each calendar year.

(2) The operator shall maintain a copy of such a report at the site of operation of the amusement attraction or amusement ride, together with proof of insurance coverage.

(b) If any insurer insuring an operator shall cancel the coverage of the operator, the insurer shall notify the Director of the Department of Labor of the cancellation at least ten (10) days before the cancellation is effective.

(c) The insurer shall immediately notify the director if the cancellation notice is rescinded or coverage is reinstated.

(d) If the insurer finds any amusement attraction or amusement ride to be unsafe or cancels the insurance coverage and so notifies the director, then the director shall immediately issue a cease and desist order preventing any operation until written documentation is provided to the director that the amusement attraction or amusement ride has been made safe or insurance coverage has been obtained.

(e) Any insurance company or surplus lines insurer failing to comply with this section shall be subject to revocation of its certificate of authority or registration by the Insurance Commissioner, or in lieu of suspension or revocation, a fine assessed by the commissioner of not more than fifty thousand dollars ($50,000).

(f) Any employee or contractor of an insurer inspecting amusement rides in Arkansas shall be registered and certified by the Department of Labor pursuant to regulation adopted by the director.

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Last modified: November 15, 2016